Three real estate investors have teamed up to acquire a multifamily property in Seattle, known as The Danforth, for $173 million. The trio includes Beverly Hills-based Kennedy Wilson, along with Japan's Hulic Co., Ltd. and Kenedix, Inc.
Kenedix and Hulic both said in a statement that they are targeting international areas with strong population and economic growth, with this move appearing to align with their strategies. William McMorrow, chairman and CEO of Kennedy, touted The Danforth and other key fundamentals of the area that the property is situated in.
“Given our 30-year history in Japan, we are proud to continue the growth of our investment management platform alongside these two prestigious companies that are aligned with our investment strategy and our focus on delivering quality housing within growing Pacific Northwest markets,” he said in a statement.
“The Danforth provides an opportunity to acquire a recently built community at a discount to replacement cost within an area experiencing limited new construction and strong absorption due to recent return-to-office initiatives from leading technology employers.”
Particularly, The Danforth consists of 265 total units, with one, two and three-bedroom offerings. Additionally, amenities include a Whole Foods Market on the ground floor, a fitness center, a resident lounge, a barbecue patio, a rooftop solarium and a demonstration kitchen.
It's unclear if the three investors will work together on future real estate purchases, but Kennedy noted it has 10 percent interest across a $6.6 million investment in an established "core plus joint venture." Additionally, the firm said that it will receive customary fees and serve as an asset manager for the JV.
The acquisition for Kennedy adds to its multifamily empire in the Pacific Northwest, which now exceeds 13,000 affordable and market-rate apartments.
According to a report from RealPage, the national average for apartment rent growth this year is expected to be 2.3 percent. Seattle was listed as a market that's projected to outperform that trend, but lag behind a 3.2 percent surge.
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